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5-6 wt stocker calves
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<blockquote data-quote="js1234" data-source="post: 1098656" data-attributes="member: 17596"><p>The ROE would be the return on just the margin put up. So if 25% is your cash and the balance is financed the ROE on a 10% ROI would be 40%. We're of the opinion that one would be on the hook for the full amount so the return should be figured on the full amount whether you're self financed or working on a certain % of borrowed funds. While I'm pretty bullish on the stocker segment as a profitable business longterm, I've never been comfortable with these guys that use ROE figures on highly leveraged operations to reflect 30/40/50% returns that I find misleading. This is a good business and has the potential for one to make a very good living and in some cases, a lot of money. I don't see the need to "overlook" debt obligations when figuring profit to make it seem better than it is. But, to each his own.</p></blockquote><p></p>
[QUOTE="js1234, post: 1098656, member: 17596"] The ROE would be the return on just the margin put up. So if 25% is your cash and the balance is financed the ROE on a 10% ROI would be 40%. We're of the opinion that one would be on the hook for the full amount so the return should be figured on the full amount whether you're self financed or working on a certain % of borrowed funds. While I'm pretty bullish on the stocker segment as a profitable business longterm, I've never been comfortable with these guys that use ROE figures on highly leveraged operations to reflect 30/40/50% returns that I find misleading. This is a good business and has the potential for one to make a very good living and in some cases, a lot of money. I don't see the need to "overlook" debt obligations when figuring profit to make it seem better than it is. But, to each his own. [/QUOTE]
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5-6 wt stocker calves
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